Today on The MarketBeat Podcast Kate’s guest is Axel Merk, President and Chief Investment Officer of Merk Investments. Axel has three very different stocks that he is discussing today and framing them in the current market and economic conditions. You’ll want to listen to details for a special report from MarketBeat, delivered to you for free.
This episode contains:
-Newmont, the world’s largest prospector, is generally one of the first stocks to move towards optimism about gold, but also one of the first to decline as pessimism mounts
-Why Newmont and mining stocks are like “gold with a kicker” to investors who think gold is boring
-Why miners can give you leverage over owning only the hard asset of gold
-Why do the prospectors have to grow through acquisition, because the resources are running out, but investors wanted the big miners to spend less money
-How late-stage economic growth is generally good for gold and prospectors
-Axel also discusses Walmart, which as a defensive stock is a proxy for the current macro environment
-While the economy is slowing, Walmart tends to do better as mid-market consumers move to cheaper stores
-In an environment of stagflation, which can last for a long time, investing in consumer price index proxies, such as Walmart, can act as a defensive game
-Why Walmart’s lackluster performance since late 2020 is a feature of a defensive stock rather than a bug
-Why Axel views AMC as the speculative stock as opposed to a defensive one like Walmart
-Why he believes the Fed needs to see a contagion risk before they stop tightening.
-What factors should you look for to determine when the Fed will stop tightening?
-Why tomorrow’s meme stock won’t be today’s meme stock like AMC
-Why does Axel believe the market hasn’t bottomed out yet?
Twitter: @AxelMerk
Brand Investments: https://www.brandinvestments.com/
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